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In this presentation the topic of Analytics will be divided into:
– What is analytics
– How publishers obtain analytics
– Why numbers matter to publishers.
What is analytics?
I found a definition of analytics by Bernard Marr, an influencer, blogger and business expert that I would like to share with you:
“Analytics refers to our ability to collect and use data to generate insights that inform fact-based decision-making. Advances in information technology and a complete datafication of our world now mean we have (or will have very soon) data and insights on everything. This gives us unprecedented opportunities that will transform business, sports, healthcare and government.”
Bernard Marr uses the word “datafication.” What is its definition?
Datafication: it means more data every day.
Day after day our world is filled with more and more data and the pace of the data growth is accelerating week by week. Data on every aspect of our life is now tracked and stored in databases and analytics allows us to turn this data into insights.
Here are just some examples that illustrate the datafication of our world:
- We increasingly record of our conversations: Emails are stored in corporate databases, our social media up-dates are filed and phone conversations are digitized and stored.
- Our activities are tracked: Most things we do in a digital world leave a data trail. For example, our bowser logs what we are searching for and what websites we visit, websites log how we click through them, as well as what and when we buy, share or like something. When we read digital books or listen to digital music the devices will collect (and share) data on what we are reading and listening to and how often we do so.
- We increasingly generate data using the ever-growing amounts of sensors we are now surrounded by: Our smart phones track the location of where we are and how fast we are moving, there are sensors in our oceans to track temperatures and currents, there are sensors in our cars that monitor our driving, there are sensors on packaging and pallets that track goods as they are shipped along supply chains, etc.
There is another term that is used in analytics, which is also very important and that is metrics.
Metrics according to the Businessdisctionary.com is Standards of measurement by which efficiency, performance, progress, or quality of a plan, process, or product can be assessed.
So what is the difference between metrics and analytics?
Quant 5 gives us this description:
Metrics focus on counting, tracking and presenting past data derived from (for example): web visits, volume of customer purchases, how many (and what kind of) promotions were done in a year and other “low value” data gathering. Since metrics use data from in-house sources (like aggregated sales data), they’re often referred to as an “inside-in perspective” on a business. And, while metrics undoubtedly provide value, reporting of this nature most often yields only basic functional, operational or systemic insights.
Analytics, by contrast, deal with both tangibles and intangibles—harnessing the power of past and present data to generate new insights, optimizations and predictions. Analytics is the domain of software and systems that gather and crunch data from heterogeneous data sources to present transformational “high value” findings. Data streams used in analytics work stem from both internal and external sources; as a result, analytics are often referred to as an “outside-in perspective” on a business.
One clarifying analogy is currently quite popular in the field: “Metrics is to accounting as analytics is to finance.” Along these lines, some experts also term metrics as “informational” while analytics are “strategic.”
One concept that is important in this equation is the relationship between dimensions and metrics.
A dimension is a descriptive attribute (definition) that can be ascribed a value.
Metrics are the measurable values of that attribute.
Where a dimension describes and defines data, metrics measures data.
To understand better the relationship of these concepts let’s look at an example:
Page views – The metric is called “page views” the dimension or the value (definition) given to this metric is “An HTML file being loaded in a web browser. Multiple views of the same web pare are counted in this metric. Now the application of this concept on the value of the data is what analytics is all about and the application of this concept is: Page-views measure traffic volume over time at the page-level, whereas visits measures traffic at the visit-or session level.
How publishers obtain analytics
According to StackCommerce, a blog about ecommerce, without the right data is impossible to optimize, grow and succeed as an online business. One of the problems is to find a system/company that interprets the numbers for online publishers accurately. StackCommerce recommends the following companies that make sense of the numbers specifically for digital media publishers.
Google Analytics: The most common choice for any companies due to the fact that Google analytics gives the most basic metrics for free. For a monthly fee, a more in depth analysis may be purchased.
Clicky Web Analytics: Another option that starts with free options. A premium plan can give a comprehensive analysis of the data. This option gives more for your money than Google Analytics according to StackCommerce.
FoxMetrics: This option is more suitable for digital publishers that have more than one blog. The monthly fee includes tools and articles geared to fulfill the needs the digital media publisher of today.
Chartbeat Publishing: This is a dedicated platform for online publishers. Its version includes editorial and Ad Sales accounts.
Parse.ly: This is a good platform for tech-driven and large publishers. The data can be focus on many aspects of the publisher’s needs. It can also be “personalized” for the different sections/teams of the website like editors, business/sales, products, etc.
sovrn: This platform in addition to analytics also provides a comprehensive analysis for monetization optimizing content to generate the highest revenue possible.
Just to end this section, Companies should strive to not only collect data but also to understand it. Having an understanding on the metrics will give not only goals but also a vision to the website.
Why numbers matter to publishers.
A business will always have the vision to turn a profit; that is why it is a business. How analytics fits in this scene? In order to optimize the website content achieving the highest revenue possible, analytics must explain the activities of the users that visit the publisher’s site. This is in a nutshell why publishers should obtain analytics and why these numbers matter. Some ClickZ’s suggestions of what analytics will turn a profit are:
Revenue for visitor: Knowing what the value of a visitor is will allow a publisher to set goals for the company.
Revenue per page: By figuring out how much revenue each page makes is a good way to know what page and product makes the most profit the publisher. This metric will allow setting goals for the website and expanding the content accordingly.
Pages per visitor: Knowing which pages are the most popular in the website will allow figuring out a strategy for increasing traffic into the publisher’s website.
Revenue per Audience Segment: Determining what segment of the audience is making the most revenue and setting goals to optimize content to serve this audience is a strategy that will bring a profit. A strategy that capitalizes on this particular audience will increase the revenue of the company.
In a nutshell, these above analytics highlight the reason why a publisher should care about them. The translation of the numbers into setting goals and actions will increase the revenue of a digital media publisher.